U.S. Identifies Front Companies for Saddam Hussein Regime

The U.S. Treasury Department has designated eight companies and five associated individuals as fronts for Iraq's former Ba'athist regime.

According to an April 15 press statement, the companies and individuals "were procuring weapons, skimming funds, operating for the Iraqi Intelligence Service, and doing business in support of the fallen Saddam Hussein regime."

Deputy Assistant Treasury Secretary for Terrorist Financing and Financial Crimes Juan Zarate said, "We are unmasking the financial façade of the former Iraqi regime. Hussein and his cronies used a global network of agents and businesses to pilfer from the Iraqi people and to underwrite their tyranny."

Commenting upon the designated companies, Deputy Secretary of the Treasury Samuel Bodman said, "One company played a key role in the former Iraqi regime's schemes to obtain illicit kickbacks on goods purchased through the U.N. Oil-For-Food Program -- a program intended to help Iraqi families
-- and attempted to procure a sophisticated surface-to-air missile system. Another served as the commercial front for the Iraqi Intelligence Service. Yet another bilked religious Iranian pilgrims out of roughly $500 million each year and directed it right into the regime's coffers."

According to Bodman, the list of companies and individuals will be submitted to the United Nations with the recommendation that all member states freeze their assets in accordance with Security Council resolution 1483 and transfer them to the U.N.-administered Development Fund for Iraq, which manages the funds for reconstruction, administration and humanitarian assistance.

The deputy secretary noted that "with U.S. leadership, nearly $6 billion of Iraqi assets and Hussein's pilfered funds have been frozen worldwide, and over $2.5 billion has been transferred by the U.S. and our global partners for the benefit of the Iraqi people."

Following are the text of Bodman's remarks and the Treasury Department press release:

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FROM THE OFFICE OF PUBLIC AFFAIRS
[U.S. Department of the Treasury]
[Washington, D.C.]
April 15, 2004
js-1334

Remarks of Deputy Secretary Bodman on the Designation of Front Companies, Individuals of the Former Iraqi Regime

Thank you all for being with us today. I want to thank Juan Zarate, the Treasury Department's Deputy Assistant Secretary for Terrorist Financing and Financial Crimes, and Tony Wayne, Assistant Secretary for the State Department's Bureau of Economic and Business Affairs, for joining me here today and for their continued hard work and leadership on the critically important effort of finding and repatriating Iraqi assets. We have seen a great deal of very productive inter-agency collaboration in this effort, and I am grateful to both the State Department and Treasury teams for their tireless dedication.

I am very pleased to announce that, once again, the United States and the United Kingdom's efforts have resulted in substantial progress in the hunt for Iraqi assets. Today we are designating a group of front companies of the former Iraqi regime, as well as individuals associated with those companies. The commitment of our British allies played an important role in today's action and in the overall hunt for Iraqi assets.

With this action, we begin the unveiling of Saddam's financial web around the world. In the coming weeks and months, the Treasury Department plans to take similar actions against other operatives of the former regime.

The companies and individuals designated today were used by Saddam Hussein and his cronies to support their cruel and oppressive regime. One company played a key role in the former Iraqi regime's schemes to obtain illicit kickbacks on goods purchased through the U.N. Oil-For-Food Program -- a program intended to help Iraqi families -- and attempted to procure a sophisticated surface-to-air missile system. Another served as the commercial front for the Iraqi Intelligence Service. Yet another bilked religious Iranian pilgrims out of roughly $500 million each year and directed it right into the regime's coffers.

The United States is submitting the names of eight front companies and five individuals to the United Nations with the recommendation they be listed by the 1518 Committee under U.N. Security Council Resolution
(UNSCR) 1483. Three of these front companies and one of the individuals were previously designated by the Treasury Department.

Today's action, which was achieved through international cooperation, requires more of the same. U.N. member states must now identify, freeze and transfer the assets, holdings and looted funds of Saddam Hussein and his regime officials, their immediate families, front companies and agents to the Development Fund for Iraq (or "DFI"). We also encourage other countries to undertake independent investigations to identify other Iraqi-related assets, publish similar listings and return identified funds to the DFI. With U.S. leadership, nearly $6 billion of Iraqi assets and Hussein's pilfered funds have been frozen worldwide, and over $2.5 billion has been transferred by the U.S. and our global partners for the benefit of the Iraqi people.

The DFI is essential for rebuilding Iraq after decades of oppression. A country that was once stagnant is now starting to flourish physically and economically. The peace-embracing people of Iraq are seeing the construction of new schools, roads, hospitals and homes. Iraqis are receiving the humanitarian support they were starved for under the former regime. And the Iraqi economy is beginning to thrive, as more people find work and bring home legitimate wages for their families.

As President Bush has said, this Administration's commitment to the Iraqi people is unwavering. A free, democratic and prosperous Iraq will contribute not only to peace in the Middle East region, but also to the security of all Americans.

FROM THE OFFICE OF PUBLIC AFFAIRS

April 15, 2004
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Treasury Designates Front Companies, Corrupt Officials Controlled by Saddam Hussein's Regime

In a joint effort with the United Kingdom, the U.S. Department of the Treasury today designated a worldwide group of front companies and individuals that were procuring weapons, skimming funds, operating for the Iraqi Intelligence Service, and doing business in support of the fallen Saddam Hussein regime.

"We are unmasking the financial façade of the former Iraqi regime. Hussein and his cronies used a global network of agents and businesses to pilfer from the Iraqi people and to underwrite their tyranny," said Juan Zarate, the Treasury Department's Deputy Assistant Secretary for Terrorist Financing and Financial Crimes.

Today's action is against eight front companies of the former Iraqi regime and five associated individuals. The United States is submitting the names of these companies and individuals to the United Nations with the recommendation they be listed by the 1518 Committee under U.N. Security
Council Resolution (UNSCR) 1483. Today's action is taken pursuant to
Executive Order 13315. Three of these front companies and one of the individuals were previously designated by the Treasury Department.

UNSCR 1483 requires U.N. member states to identify, freeze and transfer to the Development Fund for Iraq (DFI) assets of senior officials of the former Iraqi regime and their immediate family members, including entities owned or controlled by them or by persons acting on their behalf. In addition, assets of the previous Government of Iraq or its state bodies, corporations or agencies located outside of Iraq before May 22, 2003, must also be transferred to the DFI for reconstruction, administration and humanitarian assistance.

The Department of the Treasury is taking these steps to help the international community identify Iraqi assets connected to the designated entities. Treasury is also encouraging other countries to undertake independent investigations to identify other Iraqi-related assets, publish similar listings and return identified funds to the DFI.

"The Bush Administration will continue to unravel Saddam's financial web with the help of our allies and partners. The world should know that we will not tire in our efforts to hold the Hussein regime accountable for its corruption and to return Iraq's money to the Iraqi people," Zarate continued.

The Treasury Department took action today against:

AL-WASEL AND BABEL GENERAL TRADING LLC

Information available to the U.S. indicates Al Wasel and Babel was controlled by, and acted for or on behalf of, senior officials of the former Iraqi regime, including Iraqi Deputy Prime Minister and Finance Minister Hikmat Mizban Ibrahim al-Azzawi. Al-Azzawi has been named by the United Nations as a senior official of the former Iraq regime on the list established pursuant to UNSCR 1483.

Much of this information was developed during an investigation by U.S. authorities on Al Wasel and Babel's attempts to procure a sophisticated surface-to-air missile system for Iraq.

Other information developed by the U.S. Government indicates Al Wasel and Babel played a key role in the former Iraqi regime's schemes to obtain illicit kickbacks on goods purchased through the U.N. Oil-for-Food (OFF) Program.

Addresses

Ibrahim Saeed Lootah Building, Al Ramool Street
P.O. Box 10631 & 638
Rashidiya, Dubai
UAE

Lootah Building, Airport Road
Rashidiya, Dubai
UAE

Al Wasel and Babel -- Iraqi Offices
Harasiya area, Baghdad
Iraq

Individuals

Hikmat Jarjes Bahnam
a.k.a. Hikmat Gargees
Baghdad, Iraq

Tarik Nasser S. Al Obaidi
a.k.a. Tarik al-‘Ubaydi
a.k.a. Tariq al-‘Ubaydi
Baghdad, Iraq

AL-HUDA STATE COMPANY FOR RELIGIOUS TOURISM

Al-Huda served as a commercial front for the Iraqi Intelligence Service, an agency of the former Iraqi regime. Al-Huda, which held a monopoly over the provision, transportation and other tourism services to Iranian pilgrims visiting the Shi'ite shrines in Iraq, skimmed lucrative amounts off tour packages and directed the funds to the regime's coffers. Estimates show this skimming racked up as much as $500 million each year for the regime.

a.k.a.
Al-Huda for Religious Tourism Company
Al-Hoda State Company for Religious Tourism
Al-Hoda for Religious Tourism Company

Address
Iraq

AVIATRANS ANSTALT

Aviatrans Anstalt was established to manage assets of the former regime and its senior officials. This Liechtenstein--based company was reportedly the registered owner and manager of a Falcon-50 jet, which was purchased by the former Iraqi regime with Iraqi Air Force funds and used to transport senior Iraqi government officials.

a.k.a.
Aviatrans Establishment

Address
Ruggell, Liechtenstein

LOGARCHEO S.A.

Logarcheo was established to manage assets of the former regime and its senior officials. Logarcheo is reportedly the owner and manager of real estate in France that is ultimately owned by Saddam Hussein.

a.k.a.
Locarcheo AG

Address
Chemin du Carmel
1661 Le Paquier-Montbarry
Switzerland

MIDCO FINANCIAL, S.A.

Midco's president, administrator and authorized signatory Khalaf Al-Dulaymi was also a director of investments for the Iraqi Intelligence Service.

a.k.a.
Midco Finance, S.A.

Address
Switzerland

MONTANA MANAGEMENT, INC.

Khalaf Al-Dulaymi, also associated with Midco Financial, was a principal of Montana Management, which reportedly owned substantial shares of stock in one or more French firms on behalf of senior officials of the former Iraqi regime.

Address
Panama

Individuals
Khalaf M. M. Al-Dulaymi
a.k.a. Khalaf Al-Dulaimi

Adnan S. Hasan Ahmed
a.k.a. Hasan Ahmed S. Adnan
a.k.a. Ahmed Sultan
Amman, Jordan

AL-ARABI TRADING COMPANY

Al-Arabi is the ultimate holding company for a variety of Iraqi front companies that engaged in military procurement for the former regime. Al-Arabi owns 99 percent of the UK-incorporated company Technology and Development Group Limited (TDG), which in turn owns TMG Engineering Limited. TDG and TMG were involved in Iraq's arms procurement network during the late 1980s.

Addresses

Hai Babil
Lane 11, Distrcit 929
Baghdad, Iraq

Hai Al-Wahda
Lane 15, Area 902
Office 10
Baghdad, Iraq

P.O. Box 2337
Alwiyad
Baghdad, Iraq

AL-BASHAIR TRADING COMPANY

Al-Bashair, directed by Munir Al-Qubaysi, reportedly acted as the largest of Iraq's arms procurement front companies and was involved in a range of sanctions busting and corruption schemes on behalf of the regime. Al-Bashair reported directly to the Organization of Military Industrialization, which was responsible for Iraq's military procurement programs and was headed by former Deputy Prime Minister Abd-al-Tawab Mullah Huwaysh. Huwaysh has been named by the U.N. as a senior official of the former Iraq regime on the list established pursuant to UNSCR 1483.

Reporting based on documents removed from Al-Bashair's headquarters describes a variety of deals involving sham contracts, kickbacks, falsified export documentation and money laundering designed to deceive U.N. inspectors and deliver, among other things, missile components, surveillance equipment and tank barrels to the former Iraqi regime. The company also allegedly helped seniors officials of the former regime launder and hide Iraqi government funds.

a.k.a.
Al-Bashaer Trading Company, LTD
Al-Bashir Trading Company, LTD
Al-Basha'ir Trading Company, LTD
Al-Bashaair Trading Company, LTD

Address
Al-Ani Building, Sadoon Street
First Floor
Baghdad Iraq

Individual

Munir Al-Qubaysi
a.k.a. Munir Al-Kubaysi
a.k.a. Muneer Al-Kubaisi
a.k.a. Munir Mamduh Awad
a.k.a. Munir A. Awad

Syria

Midco Financial, Montana Management, Al-Arabi Trading Company and the individual Khalaf Al-Dulaymi were designated by the Treasury Department in the early 1990s as Specially Designated Nationals (SDNs) of Iraq. The United States is submitting the names to the U.N. today in order to speed the transfer to the DFI of assets that remain in these entities' names in other jurisdictions.

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